Registrations

Registered under India company act Registration with tax authorities, Exporter has to obtain PAN based BIN Exporter need to license from custom, IEC No (10digit) used for export and import (ANF2A) Registration cum membership certificate from EPC

Registration with commodity board

Airline, Shipping line, Steamer agent, Port, Airport, CFS, ICD register with Custom

Open current account in designated bank for drawback incentive

Register authorized foreign exchange dealer code

Export Documentation and Procedure

For export of goods by sea or air , Name of Shipper, Consignee, Invoice No, Details of packing, Description of goods, Quantity, FOB, 2 Copies Shipping Bill Five Types of Shipping Bills, Duty Free goods, Goods under claim for duty drawback, Duty free goods Ex bonded warehouse, Export of Dutiable goods, Under DEPB Scheme EDI/ Non Edi

For Goods exported by road Goods under claim from Duty drawback, Dutiable goods, Duty free goods, Duty free goods Bill of Export Ex bonded warehouse

Let Export Order

Checklist with other documents presented to customer officer for assessment/ Appraiser Documents such Packing list, Consular invoice, Commercial invoice, Certificate of Inspection, Origin, Health and Fumigation, Contract, Letter of credit, Purchase order. Stuffing report, LET EXPORT for Shipment

Liner Agent obtain VIA No (Terminal) and EGM No (Entry Outward) 14days in advance for vessel/voyage Containers are moved to terminal under custom bond basis TSA filed by CFS/ICD operator. EGM No and Once the container is gated in , Custom bond is cancelled by returning the TSA Via No Form13 issued by Liner to gate in container to terminal on liner account

Export Documentation and Procedure

In case of bulk cargo shifted to port premises as per carting request/Berthing request , ALLOWED FOR SHIPMENT is taken from customs Allowed for Once all containers as mentioned in shipping bill enter the terminal ALLOWED FOR SHIPMENT is given by terminal custom officer . Shipment

Bill of Lading/EGM

Bill of lading ( 3 original copies) will be issued by Liner upon shipping the goods Mates Receipt is signed by Master is submitted to customs. Sailing report, EGM Regularization, EGM closing within 7 days of vessel departure for DEPB

DEPB Scheme

Once all shipping bill in EGM are completed and EGM is closed, Exporter can avail the benefit under DEPB Scheme or duty drawback

Documents

Shipping bill (4copies), Additional 1 copy for Duty drawback with endorsement (Non Edi) Shipping bill (2 copies) Edi Packing list (4 copies) Invoice (4 copies) ARE 1 for excise Insurance policy Letter of credit

Export duty as per Schedule 2

In addition Custom tariff act makes provisions for duties like additional duty(CVD), preferential duty, anti-dumping duty, protective duties, etc

Import Documentation and Procedure

IGM if filed by liner 48hrs before vessel arrival in case on long international voyage and 24hrs before in case of short voyage, 12hrs in case of Airline Item no is given to each bill of entry by liner IGM contain item no, Shipper, Consignee, Description of goods, Quantity, Designated CFS/ICD

IGM

Bill of Entry

Three types of bill of entry, Home consumption, Warehouse, Ex Bond clearance Accompanied documents Signed Invoice , Bill of lading, Packing list, GATT declaration form, Importer declaration , License, Letter of credit, Insurance, Test report, Ad-hoc exemption report, Cert of origin, DEEC book/ DEPB Original In case of bulk cargo delivery order is issued by vessel agent upon sighting the original bill of lading, Cargo delivery can be taken from port to requisite warehouse or designated location. Custom formalities are completed prior to vessel berthing In case of containerized cargo, Container shall be moved from terminal to designated CFS/ICD normally within 3days to avoid storage charges by port

Goods Delivery

In case container is required to be moved from terminal to ICD location, TSA application is filed by liner agent, Container are moved under custom bond/Seal to such location by train or trailer Container Custom bond shall be closed once the containers are received at the ICD location to avoid movement any penalty

Classification of goods for import Schedule 1

(Chapter 1 - 5 ) - Section I-Live Animals; Animal Products

(Chapter 6-14 ) - Section II-Vegetable Products (Chapter 15 ) - Section III-Animal or Vegetable Fats and Oils and their cleavage Products; Prepared Edible fats; animal or Vegetable waxes (Chapter 16 -24 ) - Section IV-Prepared Foodstuffs; Beverages, Spirits and Vinegar; Tobacco and Manufactured Tabacco substitutes (Chapter 25 -27 ) - Section V-Mineral Products (Chapter 28 -38 ) - Section VI-Products of the Chemicals or Allied Industries (Chapter 39 - 40 ) - Section VII-Plastics and Articles thereof; Rubber and Articles Thereof (Chapter 41 - 43 ) - Section VIII-Raw Hides and Skins, Leather, Furskins and Articles thereof; saddlery and Harness; travel goods, Handbags and similar Containers; Articles of animal gut (other than silk-worm Gut)

Classification of goods for import Schedule 1

Contd (Chapter 44 -46 ) - Section IX-Wood and Articles of Wood; Wood Charcoal; cork and articles or cork; Manufactures of Straw, of Esparto or of other Plaiting Materials; Basketware and Wickerwork

(Chapter 47 -49 ) - Section X-Pulp of wood or of other Fibrous Cellulosic Material; Recovered (Waste and Scrap) Paper or Paperboard; Paper and Paperboard and articles thereof

(Chapter 50 -63 ) - Section XI-Textile and Textile Articles

(Chapter 16 -24 ) - Section IV-Prepared Foodstuffs; Beverages, Spirits and Vinegar; Tobacco and Manufactured Tabacco substitutes

(Chapter 64 -67 ) - Section XII-Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-sticks, seat-sticks, whips, Riding-crops and Parts thereof; Prepared Feathers and articles Made therewith; artificial Flowers; Articles of Human Hair

(Chapter 68 -70 ) - Section XIII-Articles of Stone, Plaster, Cement, Asbestos, Mica or similar Materials; Ceramic Products; Glass and Glassware

Classification of goods for import Schedule 1

Contd

(Chapter 71 ) - Section XIV-Natural or Cultured Pearls, Precious or Semi-Precious Stones, Precious Metals, Metals clad with Precious Metal, and articles thereof; Imitation Jewellery; Coin

(Chapter 72 -83 ) - Section XV-Base Metals and Articles of Base Metal

(Chapter 84 - 85 ) - Section XVI-Machinery and Mechanical Appliances; Electrical Equipment; Parts thereof; sound Recorders and Reproducers, Television Image and Sound Recorders and reproducers, Television Image and sound Recorders and Reproducers, and Parts and Accessories of such article

(Chapter 86 - 89 ) - Section XVII-Vehicles, Aircraft, Vessels and Associated Transport Equipment

Classification of goods for import Schedule 1

Contd

(Chapter 90 - 92 ) - Section XVIII-Optical, Photographic, Cinematographic, measuring, checking, precision, medical or surgical Instruments and apparatus; clocks and watches; musical instruments; part and accessories thereof

(Chapter 93 ) - Section XIX-Arms and Ammunition; Parts and Accessories thereof

(Chapter 94 - 96 ) - Section XX-Miscellaneous Manufactured Articles

(Chapter 97 - 98 ) - Section XXI-Works of art, Collectors' Pieces and Antiques

Valuation

As per rule 10 custom valuation rules, it is duty of importer to declare full value of goods If assessing officer has doubts then he carry out valuation basis similar goods as per WTO agreement In case of EDI system , Assessment and calculation is done by system itself Custom duty can be paid by TR-6 challan in designated banks or current account with customs.

Duty Shall be paid within 5 working days of return of bill of Entry

Calculation of duty amount

Taxation Assessable value (A) CIF Value + 1% landing charge of CIF Basic Duty (B) A x Basic duty Preferential duty (C) A X Pref duty CVD Additional Duty (D) (A + B) x add duty rate X% X% X% Duty rate Duty amount

Central Excise education cess (E) D x Edu cess rate

Custom Education cess (F) (B + C + D+ E ) X custom cess Special duty (G) (A + B + C + D+ E ) x special CVD Total Custom duty

3%
3% 4% (B + C + D+ E +F+G)

Shipping Structure

Ship Owner

Bareboat or Demise Charter Voyage Charter

Time Charter

Cost Structure
Activity Vessel Owner Bareboat Charter
Master appointed by Charter Hire for lease period Revenue generated by Hire rate & duration Wages Repairs Maintenance Stores Lub Oils Water Insurance Overheads NA

Time Charter (Disponent Owner)

Master instructed by Owner for ship and by Charterer for cargo Revenue basis hire rate duration NA

Voyage Charter
Master instructed by Owner Revenue basis quantity of cargo and rate per unit of cargo NA

Responsibility

Revenue Operating cost

Capital Cost Brokerage

Marine and Port cost Bunker

Marine and Port Cost Stevedoring cost Hold cleaning Cargo claims Canal Transit Bunker

Marine and Port Cost Stevedoring cost Hold cleaning Cargo claims Canal Transit Bunker

NA

COA :- Cost distribution same as voyage charter

Charter Parties Dry bulk , Tanker and Liner

Voyage Charter

Gencon 1994 Fonasba Intertank voy 76 Asbatank

Baltime (Favor Shiponwer ) NYPE ( Favor Charter) Gentime Time Chatrer Boxtime (Liner)

Charter parties has two parts main clauses and rider clause which override the main clauses Main Clauses in Time charter Period of delivery, Trading areas, Cargo restriction and exclusion, Redelivery, Bunkers, Vessel Gears, Hire, Off-hire, Loss of vessel , Owners obligation, Charterer obligation, Master obligation, Owner Requirement, Bill of Lading, Responsibilities, Sundries, Exception, Insurance, War risk, Law and Arbitration, Notices, Strike clause, Vessel description, Bunker consumption, Loading capacities, Cargo Gears etc Voyage Charter, Laycan, Laydays, Demurrage, Dispatch, Cancelling days , Cargo C/p Features description, Cargo Qty , Ports, Liner terms, Laytime (NOR), Lien, Bill of Lading, Freight Charter party is basically COA for hire tonnage space on vessel and does not represent goods

Bills of lading
Key point and other docs

Contract between the Shipper and Owner for the good loaded on board the vessel. Issued by Master , Agent or representing Owner office. Issued 3in original A legal document for releasing the payment from bank in conjunction with letter of credit A b/l must be signed by person authenticated by person issuing the document. Must contain the name of ship carrying goods, Port of loading, discharging, Date of issue, Negotiable or non negotiable, Name of consignee , Cargo description, weight and volume. Freight terms and payment If bill of lading has been endorsed, Endorsement shall be checked and then only delivery order shall be issued. Ensure freight is paid. In case bill of lading does not arrive , Cargo can be released by letter of Indemnity supported by bank guaranties. Master to appoint P & I . Cargo can be considered to be discharged and kept in custody of warehouse. Mates receipt, Interim document until Bill of lading is issued,. Cargo Stowage plan , Packing List, Consular invoice, EGM, IGM, Statement of facts, Draft Surveys, Log Abstracts,

Voyage Estimation
Key points

Vessel Assessment :- GRT, NRT, Deadweight, LOA, Beam, Class, Cargo capacity, Hold and Deck Stowage, Age Mapping proposed employment :- Distance, Weather, Load line Zones, Canal transit, waiting time, Bunkering, Port Information, Delays, Loading/Discharging time.

Estimation of cargo quantity :- Draft, Displacement, Density, Ballast, Fuel Oil, Diesel Oil, Lube Oil, Fresh Water, Constant , Light Ship, Stowage Factor, Bale capacity, Grain capacity ie Full load weight = Bale or Grain Capacity/ SF
Expenses Calculation :- Fuel Consumption at Sea and in port, Port Expenses, Stevedoring if applicable , Agency fees, Canal Transit if applicable, Brokerages, Freight Tax, Insurance, Hold cleaning, Lashing, Misc Calculate Income and net results

Voyage Estimation Sheet attached for reference in excel